Brinscall Kielder Limited produces garden leaf blowers.The prime cost of each leaf blower is £26.50.For the year ended 31 March 20X4, the directors estimate that production overheads will be £6 761 000 and selling and administration overheads will be £3 626 000.Estimated production and sales for the financial year is 275 000 units, and the budget selling price is £76.50. What is the budget profit of the company for the year ended 31 March 20X4?
A) £10 387 000
B) £10 650 500
C) £6 989 000
D) £3 363 000
Correct Answer:
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